Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) unit Bedek Aviation Group has won a follow-on contract from Air Transport Services Group Inc. (Nasdaq: ATSG) unit Cargo Aircraft Management Inc. to convert 14 Boeing 767-200 passenger jets to cargo planes for more than $100 million.
IAI is already working on the prototype plane and should receive STC certification in June 2009. The second aircraft (first series aircraft) is scheduled for induction in March 2009. All the work will be performed in Israel on two parallel production lines.
Cargo Aircraft Management COO William Tarpley said, "The fact that IAI has been a preferred service provider to our ABX Air affiliate for more than a decade speaks volumes about IAI's workmanship and customer service."
IAI president and CEO Yitzhak Nissan said, "IAI's plane conversion line continues to grow as a core business of the Aircraft Division."
Sources inform ''Globes'' that Bedek Aviation is visiting China to market its services in an effort to greatly boost IAI's civilian business in China and in Asia in general.
Published by Globes [online], Israel business news - www.globes-online.com - on September 24, 2008
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